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Thanks for that Shenron. I guess even i'll wait for sometime before upgrading. Some great features are up with 2.9, specially the much needed image editor(atleast useful for me ).
I've taken out a small chunk of info from the official WP blog regarding the newly introduced features and quoted them below :

1. Global undo/”trash” feature, which means that if you accidentally delete a post or comment you can bring it back from the grave (i.e., the Trash). This also eliminates those annoying “are you sure” messages we used to have on every delete.
2. Built-in image editor allows you to crop, edit, rotate, flip, and scale your images to show them who’s boss. This is the first wave of our many planned media-handling improvements.
3. Batch plugin update and compatibility checking, which means you can update 10 plugins at once, versus having to do multiple clicks for each one, and we’re using the new compatibility data from the plugins directory to give you a better idea of whether your plugins are compatible with new releases of WordPress. This should take the fear and hassle out of upgrading.
4. Easier video embeds that allow you to just paste a URL on its own line and have it magically turn it into the proper embed code, with Oembed support for YouTube, Daily Motion, Blip.tv, Flickr, Hulu, Viddler, Qik, Revision3, Scribd, Google Video, Photobucket, PollDaddy, and WordPress.tv (and more in the next release).

If makes Wordpress slower I don't like it, we should be able to select in the admin panel between a "light" and fast version with many features we don't need disabled and the normal version. Now, when the speed is planned to became a search engine factor is important to be faster, Wordpress was the best for SEO but now it is not, it is too slow and I don't like to use Super Cache plugin.

I updated an old blog using wordpress 2.1 a couple of days ago. It was kind of crazy until I read the post on wordpress about updating your wordpress blog. I thought it would be easier doing a clean install and importing the database through phpmyadmin. That wouldn't work.

Other than having a problem with an old plugin, the upgrade went smoothly.